About a year or two ago, Mercedes-Benz was optimistic that American luxury car buyers were ready to fully embrace its new lineup of electric vehicles (EVs). Unfortunately, that optimism hasn’t translated into strong sales figures in the U.S. market. Mercedes’ venture into the luxury EV segment has so far underperformed, prompting the company to slash prices on its EQ series models significantly in an effort to move unsold inventory.
The price reductions vary widely, ranging from just over $4,000 to more than $15,000 on select EQE and EQS sedans and SUVs—models that haven’t resonated well with American consumers. For example, the EQE sedan now comes with a discount of $9,950, bringing its price down from $76,050 (including destination fees) to $66,100. Even more substantial savings apply to the EQE SUV, which originally sold for $79,050 but is now available for $66,100, reflecting a $12,950 price cut.
The EQS models, which sit higher in the lineup, have also received price cuts, though the reductions are somewhat smaller on the sedan variant. The EQS sedan’s price dropped by $4,150, from $105,550 to $101,400. However, the EQS SUV saw a much steeper discount, dropping from $106,400 to $91,100—a whopping $15,300 reduction. These figures were initially reported by CarBuzz and have since been confirmed by Mercedes-Benz.
Alongside these aggressive discounts, Mercedes has halted new orders for all four EQ models—the EQE and EQS sedans and SUVs—in the U.S. market. Additionally, production of the U.S.-market versions of the EQE and EQS SUVs at Mercedes’ Alabama plant will cease starting September 1. The plant will continue producing these vehicles for other global markets but will temporarily stop fulfilling U.S. demand.
A Mercedes spokesperson told Car and Driver that this decision was made to “align with customer and market demand.” They also noted that Mercedes cannot currently provide a timeline for when orders for these models will reopen in the U.S., citing competitive reasons.
However, this doesn’t signal the end of Mercedes’ electric ambitions in America. The automaker plans to launch an all-new electric CLA sedan in the U.S. later in 2025. This will be followed by two new electric SUVs based on the MMA platform, which are expected to arrive within the next few years.
One of these upcoming models, the electric GLC SUV, is set for its debut in Munich this September and has been confirmed for production at the Alabama facility. It is scheduled to hit U.S. showrooms in 2026. Meanwhile, the electric G-Class remains on sale, although it has also experienced disappointing sales figures. Mercedes is clearly recalibrating its strategy as it continues to pursue the growing electric vehicle market in the United States.